Pfanntastic Home Buyers Handbook Chapter 6 b. - Where To Find A Lender
In our journey towards buying your 1st home, so far we have covered.
- A broad overview in buying your 1st. Home
- Location, is Everything
- Selecting a Realtor
- Preparing to View Homes
- Watching the Market
- Financing Options
Please review the previous chapters for more details in our Pfanntastic Home uyer Handbook Series, and or contact Peter of Linda Pfann.
These days there are many places to find a mortgage lender, such as :
- Newspaper advertisements
- Television advertisements
- Family or friends
- Mortgage Brokers
- Your Current lender
- Your Current bank
- On-line
- Your Realtor
Unless you are very comfortable with your current lender, you may find that there is some benefits to consider working with a Mortgage Broker Company, of your liking. Most Mortgage Brokers will have access to numerous lenders and as such can save you many hours of shopping around and having to submit multiple application (and disclosing a lot of personal information every time) . Most Mortgage Brokers will also be able to often time negotiate better terms and conditions for you, as they tend to get slightly higher discounts on the posted interest rates then those most lenders will offer you (this is because of their sheer volume of mortgages).
As you can see, finding a lender should not be too difficult. You may have to contact several lenders before you find a lender that will give you a loan that meets your needs.
When you apply for a home mortgage loan, the lender will check the following for each of the Mortgage Applicant:
- Your credit score.
- Verification of Down-payment
- Your credit history
- Your current income
- Income of co-signer (if needed)
- References (professional and personal)
- Current interest rates based on the amount you are asking for
- Status of other loans you may have
- Number of years you have been eligible to work, and
- Number of years you have had credit
There are many factors that will go into your approval or denial of a home loan. You will have to be patient. You could contact a few lenders to see which ones will give you the best deal (or have your mortgage broker do this for you). Once your offer on your new home has been accepted, the lender(s) will start the process to combine your personal financial ability to buy a property, with the actual property you made the offer on. As such you will forward your contract and property details to the lender/mortgage brokers
Other important information the lender will need before granting you a loan:
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- The home appraisal
- The home inspection report (which may include a termite inspection report, and
- Strata and or Home Owner Association documents.
- Disclosure documents.
- Title documents
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These reports are very important to a lender because they will tell the lender how much the home is actually worth and the types of damage that have lowered the overall value of the property.
Lenders expect homeowners to remain in the home for at least five years. This will allow them to make a profit on the money they have loaned you. It is not worth it to them if you have to sell the home shortly after buying it because there is too much damage and you can no longer live there.
It is always good to know your options and we would encourage you to contact Peter or Linda Pfann, for any questions you may have about the various methods and choices available to you to finance your 1st home.
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